Market Size in 2024 | Market Forecast in 2034 | CAGR (in %) | Base Year |
---|---|---|---|
USD 271.73 Million | USD 1090.78 Million | 13.6% | 2024 |
The global solar energy market size was worth around USD 271.73 Million in 2024 and is predicted to grow to around USD 1090.78 Million by 2034 with a compound annual growth rate (CAGR) of roughly 13.6% between 2025 and 2034. The report analyzes the global solar energy market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the solar energy industry.
The term "solar energy" refers to the power derived from solar radiation, which may be captured and transformed into a variety of energy sources, including heat and electricity. It offers a desirable substitute to conventional fossil fuels, which are limited and cause climate change because of their abundance and renewable nature. Different technologies may be used to capture solar energy, such as photovoltaic cells, which utilize heat from the sun to produce electricity, or concentrated solar power systems, which use heat from the sun to produce hot water for various uses or convert sunlight straight into electricity. Solar energy usage provides several advantages, including lowering greenhouse gas emissions and reducing reliance on fossil fuels as well as promoting a cleaner and more sustainable energy future.
Growing environmental concerns drive market growth
The demand for solar energy, which is a sustainable and clean form of energy, is expected to increase due to the rising environmental concerns caused by the release of dangerous greenhouse gases that cause air pollution. For example, switching to solar power instead of fossil fuels for energy generation may significantly lower carbon dioxide emissions, which cause an increase in global temperatures and contribute to climate change. Extreme weather conditions are brought on by rising temperatures, including rising sea levels, glacier melt, and ecological changes. By lowering the demand for fossil fuels and limiting greenhouse gas emissions, solar energy usage lowers the carbon footprint. For instance, the Lawrence Berkeley National Laboratory estimates that utility-scale solar electricity generates between 394 and 447 MWh per acre annually. As a result, one acre of solar panels emitting zero emissions annually prevents 121 to 138 metric tons of carbon dioxide from entering the atmosphere.
High upfront cost limits market expansion
Although the price of solar panels has come down over time, governments, businesses, and households may still find it difficult to afford the initial expenditures of solar systems. Although incentives and financing choices support easing this restriction, some people still have affordability concerns. For instance, secondary sources indicate that the average cost of solar panels is roughly $16,000, ranging from $4,500 to $36,000 depending on the kind and model, as well as any inverters and the BOS, or balance of the system, which refers to all necessary operating equipment. Therefore, the high upfront cost of solar energy installation is expected to hamper the solar energy industry growth.
Growing product launches offer a lucrative opportunity for market growth
The growing product launches offer a lucrative opportunity for solar energy market growth during the forecast period. For instance, in February 2024, Green World Renewable Energy LLC, a top provider of Solar Permit Designing & PE Stamping services in the USA, unveiled a brand-new and ground-breaking solar panel and combiner box system at the ISNA Exhibition in Long Beach, California. These solar energy products offer a reliable and efficient way to harvest solar energy. This system offers a clean, affordable, and sustainable alternative to conventional energy sources that helps to address the rising need for renewable energy sources. An essential part of the system that aids in managing and optimizing the electricity produced by the solar panels is the combiner box. It makes it simpler to administer and monitor the functioning of the entire system by combining the output from several panels into a single stream. The combiner box has cutting-edge protective measures to stop overloading and short-circuits and was built with reliability and security in mind.
Environmental concern poses a challenge to market growth
Solar panel manufacturing procedures that employ rare materials and a lot of energy can harm the environment during both production and disposal. Even though they should always be practiced, recycling and proper disposal are crucial. Therefore, the environmental impact related to the disposal of solar panels poses a major challenge to the market growth during the projected period.
Report Attributes | Report Details |
---|---|
Report Name | Solar Energy Market |
Market Size in 2024 | USD 271.73 Million |
Market Forecast in 2034 | USD 1090.78 Million |
Growth Rate | CAGR of 13.6% |
Number of Pages | 230 |
Key Companies Covered | Trina Solar (China), First Solar (U.S.), Yingli Solar (China), Tata Power Solar System Ltd (India), Abengoa (Spain), Canadian Solar Inc. (Canada), Waaree Group (India), General Electric Company (U.S.), BrightSource Energy, Inc. (U.S.), SunPower Corporation (U.S.), Convert Italia (Italy), Urja Global Limited (India), eSolar Inc (U.S.), and others. |
Segments Covered | By Technology, By Application, and By Region |
Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America, The Middle East and Africa (MEA) |
Base Year | 2024 |
Historical Year | 2020 to 2023 |
Forecast Year | 2025 - 2034 |
Customization Scope | Avail customized purchase options to meet your exact research needs. Request For Customization |
The global Solar Energy industry is segmented based on technology, solar module, application, end-use, and region. All the segments have been analyzed based on present and future trends and the market is estimated from 2025 to 2034.
Based on the technology, the global market is bifurcated into photovoltaic systems and concentrated solar power systems. The photovoltaic systems segment is expected to capture the largest market share over the forecast period. PV systems are frequently utilized in distributed generation to enable power production by individual residences and businesses. This improves energy resiliency and decreases reliance on centralized power facilities. These systems are frequently installed on business and residential building rooftops to provide clean energy and save power costs. The ability to feed excess power into the grid due to net metering benefits customers financially.
Based on the application, the global solar energy market is bifurcated into electricity generation, lighting, heating, and charging.
The Regional, this segment includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America,and the Middle East and Africa.
The solar energy market exhibits strong regional diversity, with Asia-Pacific leading the global expansion due to large-scale government initiatives, significant investments in solar infrastructure, and rapid industrialization in countries like China and India. North America, particularly the United States, follows closely with growing residential and commercial installations supported by tax incentives and technological innovation. Europe maintains a strong position driven by strict environmental regulations and ambitious renewable energy targets across countries such as Germany, Spain, and the Netherlands. Meanwhile, regions like the Middle East, Africa, and Latin America are emerging as promising markets, leveraging abundant solar resources and increasing demand for off-grid energy solutions to address power shortages and sustainability goals.
The report provides a company market share analysis to give a broader overview of the key market players. In addition, the report also covers key strategic developments of the market, including acquisitions & mergers, new product launches, agreements, partnerships, collaborations & joint ventures, research & development, and regional expansion of major participants involved in the solar energy market on a global and regional basis.
The global solar energy market is dominated by players like:
The global solar energy market is segmented as follows;
By Technology
By Application
FrequentlyAsked Questions
The term "solar energy" refers to the power derived from solar radiation, which may be captured and transformed into a variety of energy sources, including heat and electricity. It offers a desirable substitute to conventional fossil fuels, which are limited and cause climate change because of their abundance and renewable nature. Different technologies may be used to capture solar energy, such as photovoltaic cells, which utilize heat from the sun to produce electricity, or concentrated solar power systems, which use heat from the sun to produce hot water for various uses or convert sunlight straight into electricity. Solar energy usage provides several advantages, including lowering greenhouse gas emissions and reducing reliance on fossil fuels as well as promoting a cleaner and more sustainable energy future.
The global solar energy market is expected to grow due to rising demand for renewable energy, increasing government incentives and policies, growing environmental concerns, and expanding investments in solar infrastructure.
According to a study, the global solar energy market size was worth around USD 271.73 Million in 2024 and is expected to reach USD 1090.78 Million by 2034.
The global solar energy market is expected to grow at a CAGR of 13.6% during the forecast period.
North America is expected to dominate the solar energy market over the forecast period.
Leading players in the global solar energy market include Trina Solar (China), First Solar (U.S.), Yingli Solar (China), Tata Power Solar System Ltd (India), Abengoa (Spain), Canadian Solar Inc. (Canada), Waaree Group (India), General Electric Company (U.S.), BrightSource Energy, Inc. (U.S.), SunPower Corporation (U.S.), Convert Italia (Italy), Urja Global Limited (India), eSolar Inc (U.S.), among others.
The report explores crucial aspects of the solar energy market, including a detailed discussion of existing growth factors and restraints, while also examining future growth opportunities and challenges that impact the market.
HappyClients
Zion Market Research
Tel: +1 (302) 444-0166
USA/Canada Toll Free No.+1 (855) 465-4651
3rd Floor,
Mrunal Paradise, Opp Maharaja Hotel,
Pimple Gurav, Pune 411061,
Maharashtra, India
Phone No +91 7768 006 007, +91 7768 006 008
US OFFICE NO +1 (302) 444-0166
US/CAN TOLL FREE +1 (855) 465-4651
Email: sales@zionmarketresearch.com
We have secured system to process your transaction.
Our support available to help you 24 hours a day, five days a week.
Monday - Friday: 9AM - 6PM
Saturday - Sunday: Closed